I saw an interesting theory in a KD FB group. Could SEA already be planning a possible KD sale SF? It linked the cutting of Holiday in the Park and other things as a sign that SF might be looking at other regional opportunities
News SeaWorld Makes $3.4 Billion Takeover Bid for Cedar Fair
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I can’t see any reason why combined SEAS would give up KD unless its to avoid a lawsuit against the merger by VA or the feds. Having control of both BGW and KD provides significant pricing power for SEAS and allows the rationalization of investments, events, and operating hours between the two parks. No way they voluntarily give that up.
Another rumor is that SEAS isn't serious and/or fully believes CF won't accept the offer, they're just using this as a money grab for stock price increases. Basically, they're bluffing and not expecting to be called on it. But that's a rumor so how should I know?
Highly doubt that one usually you have to pre-arrange the financial end to be sure you can follow through before making the offer. I can't see them going through that if it was a bluff.
According to the news the offer is non binding and the parties are in discussions. It’s certainly possible SEAS is using this to draw attention and maybe find a more attractive acquiring or merger party, though I really can’t think of one outside of maybe trying to attract a major media company.
I did some digging and it only took CF about 3 days from when the SF offer became public to when they announced they had turned it down. I would say that if we haven't heard anything by the end of the week that it would be a significant indication that the offer was being seriously considered.
Some morning reading for you.
Biggest take away is things are a lot different them when SF made their offer and that the odds may be in SEAS favor.
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Biggest take away is things are a lot different them when SF made their offer and that the odds may be in SEAS favor.
Here's a video from coaster studios which does a good job explaining the concerns I raised in an earlier post on how the deal would negatively impact park goers. I hope Taylor is correct and the deal falls through.
Direct Link to Embedded Media Source
Direct Link to Embedded Media Source
Lots of good info in here:
Cedar Fair stock gains after analysts sees SeaWorld bid as too low (NYSE:SEAS)
Cedar Fair (FUN) rose 2.3% after gaining 4.3% on Monday after a report that SeaWorld (SEAS) offered to acquire the amusement park operator for $60/share as analysts see the bid as too...seekingalpha.com
General take is that SEAS' offer is too low, but a deal makes a lot of sense—potentially even at a notably higher price point per share.
A little more morning reading:
SeaWorld's $3.4 Billion Offer for Cedar Fair Is a Win-Win Deal | The Motley Fool
SeaWorld made an unsolicited buyout offer for the regional amusement park operator. Is your portfolio tall enough to ride?www.fool.com
I was reading a similar story this morning:
I will say that opinion is that SEAS is serious about the offer, but they don't expect it to go through as is. Instead I think they want to use it to buy some parks from CF instead of the whole company.
I could see that as a counteroffer. “Well, we don’t want to give up these parks, but if you’re interested, we could give you these parks..”
Yeah I mean I figured that they were starting with an offer that they assumed they would have to negotiate from.
I personally would hope some of the more neglected investment wise Cedar Fair parks get sold to a parent company that would invest in them. I would probably look at CF with absolute disdain if I lived somewhere like Kansas City or Minneapolis or god forbid Michigan. I mean they took Volcano from our park but they also added 2 of the best roller coasters in the world (this detail is my favorite), an above average B&M Floorless, a free spin, a frisbee, and other nice things so can only complain SO much about how CF has handled KD.
I would doubt that CF would be able to solely sell off the bad parks to SEA. One possibility that I could see would be them offering a combination of those lower tier parks with say KI and another solid preforming park. But honestly if this is only a partial acquisition in the end I expect KI to be in the package as it relives CF from the burden of two parks in the same general area.
Keep in mind that Paramount didn't exactly have a great record of bringing in reliable rides - Volcano and Hypersonic XLC were both prototypes so inherently weren't yet ready for intensive park use when they were opened (not to mention had low capacities); I believe Shockwave was more to do with lower ridership than desired and that Togo went out of business in the US (I'd assume that maybe a park could custom order something from them from Japan, but have no earthly idea why) and even if Paramount never owned the park it would have likely been removed anyways.
Therefore, even though it looks like KD has been losing coasters, it's because what they lost were low-quality versions of later designs that took lessons from such prototypes (at least for similar ride system installations even if there aren't many left).
None of this makes KD neglected, even before the announcement for JX and Tumbili.
Therefore, even though it looks like KD has been losing coasters, it's because what they lost were low-quality versions of later designs that took lessons from such prototypes (at least for similar ride system installations even if there aren't many left).
None of this makes KD neglected, even before the announcement for JX and Tumbili.
Full control of a regional market is the opposite of a burden. KD and BGW are more valuable together than apart just as KI and CP are more valuable together than they are apart.
I think it's clear that SEAS wants to expand their market reach and that's certainly part of the thinking here. That said, I'm confident that they also want to reduce regional competition wherever possible. Something SEAS has always struggled with is that EVERY park they currently own is in a hotly contested market. The two routes out of that situation are either to buy more parks in uncontested markets or buy your competition. This Cedar Fair offer gives them a little of both.
While I agree with your logic it's always important to remember that perception is reality. CF had little choice but to remove some of these rides but that doesn't change many people's beliefs that KD is being neglected.
I wonder what parks. Dorneys got SP not too far. Maybe getting something like Mich Adv to turn into a pure SP elsewhere. Knotts makes sense since it’s landlocked for CF to give up as the “crown jewel” and make that “someone else’s” problem.
Is there any legal right to change the same on some of these? I can’t see Seaworld Anaheim but I could see Busch Gardens Knotts Farm being a good name.
Knott's Berry Farm is such a popular name I'm sure it would stay as-is, same with Cedar Point, King's Island, and King's Dominion.
Basically, for many of these parks, their brands are baked into public perception meaning it's going to be one heck of a time to attempt a true rebranding from one existing park brand to another.
Maybe it'd be better to think of such a merger creating a company like Unilever but for entertainment venues, specifically parks (theme and amusement varieties).
Unilever owns a ridiculous amount of brands that, while all roll up under Unilever and may have the U logo discreetly on the packaging, otherwise doesn't insert the parent company's name into the brand names (except Lever 2000 soap, if it's still around). Same deal for the parks should this happen.
Maybe it'd be better to think of such a merger creating a company like Unilever but for entertainment venues, specifically parks (theme and amusement varieties).
Unilever owns a ridiculous amount of brands that, while all roll up under Unilever and may have the U logo discreetly on the packaging, otherwise doesn't insert the parent company's name into the brand names (except Lever 2000 soap, if it's still around). Same deal for the parks should this happen.